Inpex signs up Clough for Ichthys LNG work

Japan’s Inpex has given a clear indication it is nearing a final investment decision on its $25 billion Ichthys liquefied natural gas project in Darwin, awarding a letter of intent to a
Clough
joint venture for offshore support services work on the venture.

Clough said on Tuesday the proposed contract for its joint venture with France’s Doris Engineering is worth more than $250 million. It is conditional on Inpex and partner Total going ahead with a final investment decision on the project in the December quarter.

The Ichthys project is one of at least five LNG ventures in Australia that have been approved or are due to be approved this year. It will have a capacity to produce 8.4 million tonnes of LNG and 1.6 million tonnes of LPG per year, along with 100,000 barrels of condensate per day at peak.

Inpex and Total are expected later this month to finalise the rest of the LNG sales contracts for the Ichthys project. So far they have signed agreements with Taiwan’s CPC Corp. and Japan’s Chubu Electric Power and Toho Gas. Inpex and a Total subsidiary will also take 1.8 million tonnes a year of LNG between them.

Some of the customers are also expected to buy stakes in the project, which will involve the development of offshore gas fields in the Browse Basin and an onshore LNG production plant in Darwin, plus a pipeline to transport the gas to the plant.